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Organizational Commitment: Employee Satisfaction & Consequences

Explore the types and measures of organizational commitment, and its impact on absenteeism, turnover, and counterproductive behavior. Discover strategies to increase employee satisfaction and commitment.

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Organizational Commitment: Employee Satisfaction & Consequences

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  1. UHS 2062 : Introduction to Industrial PsychologyTitle : Employee Satisfaction and Commitment (II)Lecturer’s Name : PuanSitiRokiahbintiSiwokGroup members : Foo HengYen (AS100202)Mok Kin Loon (AS100218)Tan KokKiong (AS100244)MuhamadHaziq Bin Hamzah (AS100166)MohamadKhairilAnuar Bin Zamri ( AS100163)MuhamadAssafiq Bin Sahar (AS100165)

  2. Abstract and summary Our topic basically emphasis on the organizational commitment. In this organizational commitment, we will categorize the organizational commitment. Our topic will also discuss the consequences of the organizational commitment which include absenteeism, turnover, counterproductive behavior and so on. With the present of the consequences, we will also look on the positive employee attitudes and behavior and the ways to overcome the consequences by increasing the employee’s satisfaction and their commitment towards the organization. Due to the above discussion, hopefully it will help all of us understand more about the organizational commitment.

  3. Organizational Commitment • An employee’s loyalty to the organization, willingness to exert effort on behalf of the organization, associated with the acceptance of the organization’s goal and values and desire to maintain membership. • A worker’s feeling and attitudes about the entire work organizations.

  4. Types of Commitments

  5. (A) Affective Commitments • Emotional attachment, identification, and involvement that an employee has with its organization and goals. (B) Continuance Commitment • Willingness to remain in an organization because of the investment that the employee has with “ nontranferable” investment.** Employees who share continuance commitment with their employer often make it very difficult for an employee to leave the organization. (C) Normative commitments • Commitment of people believes that they have to stay in the organization or their feeling of obligation to their workplace.

  6. In order to make this clear , those employee’s with a strong affective commitment will remain with an organization because they want to, those with a strong continuance commitment remain because they have to, and those with a normative commitment remain because they fell that they have to.

  7. Measures of Organizational Commitment Organizational Commitment Questionnaire To measure 3 commitment factors: (i) acceptance of the organization value and goals. (ii) willingness to work and to help the organization. (iii) desire to remain with the organization. 2. Organizational Commitment scale (OCS) To measure 3 aspects of commitment: (i) identification (ii) exchange (iii) affiliation

  8. Most commonly used measure of organizational commitment is that developed by Allen and Myer (1990) which is based on 3 factors of affective,continuance and normative commitments. Example questions as follow :

  9. Absenteeism is a habitual pattern of absence from a duty or obligation. Absenteeism may seem to be self-evident variable, but there are actually a number of ways in which it may be operationally defined. THE MEANING AND MEASUREMENT OF ABSENTEEISM

  10. DETERMINANTS OF ABSENTEEISM • The search for personal characteristics and organizational variables that are associated with absenteeism has developed partially out of the realization that job dissatisfaction alone is an insufficient explanation. • However the proponents of the “job dissatisfaction causes absenteeism” hypothesis have made significant contributions to this research through their attempts to identify characteristics and variables associated with dissatisfaction and so with greater absenteeism.

  11. ORGANIZATIONAL VARIABLES AND ABSENTEEISM • A number of different aspects of the job situation have been investigated in the search for the determinants of absenteeism. • The nature of the work that an individual performs has been the focus of much of this research, which usually is based on the hypothesis that boring, unfulfilling work leads to job dissatisfaction. • The dissatisfaction, in turn, leads to increased absenteeism.

  12. CONTROLLING ABSENTEEISM • Attention on ability-to-attend variables. • Transportation problems • Work hour scheduling • Flexible scheduling • A positive reinforcement program

  13. THE MAJOR INFLUENCES ON EMPLOYEE ATTENDANCE Job Situation – Job scope, job level, role stress, work group size, leader style, co-worker relations and, opportunity for advancement. Employee Values and Job Expectations Personal Characteristics – Education, tenure, age, sex, family size. Satisfaction with Job Situation Pressure to attend- Economic/market conditions, Incentive/reward system, work group norms, personal work ethic, organizational commitment Attendance Motivation Ability to Attend – Illness and accidents, Family responsibilities, Transportation problems Employee Attendance

  14. Turnover • “Resolving door” of the employee being hired, staying for a little while, and then leaving. • A process of separation or disengagement from an employing organization. Involuntary turnover- occurs when employees are fired or laid off- because employee not performing at desirable levels. 2 types Voluntary turnover- occurs when a competent and capable employee leaves to work elsewhere.- consequences : costly to the organization because of losing a value employee.-lower down the productivity, increase expenses on hiring and training a replacement.

  15. Exit interview surveys • Instrument which identify reasons why an employee left an organization. • Questions can be broken down in various category:(a) reason exiting organization(b) work environment(c ) supervision(d) compensation(e) characteristic of the job (f) training

  16. Ways to reduce turnoverPurpose : to identify the reasons for employee leaving an organizationInstrument used : exit interview survey , salary surveyWe categorized the reasons in to 5 groups :(a) Unavoidable reasoneg: students doing part time job and forced to continue studies after the holiday (b) Advancement- can be reduced by offering more pay and higher status position.(c ) Unmet needs- organization should consider the person/ organization fit when selecting employees

  17. (d) Escape- providing a mentor to help the employee deal with workplace problem.(e) Unmet expectation- Organization does not match employee’s expectation, become less satisfied and leave.- way to reduce : (i) conduct realistic job preview during recruitment stage. (ii) provide a good working environment. (iii) provide a competitive pay and benefits package. (iv) provide opportunities to advance and grow. (v) select employees who did not leave their previous job after only a short time. (vi) Mediate conflicts between employees and their peers, supervisors, and customers.

  18. Counterproductive behaviour • Employers not limited to unhappy employees provide ways to “get back” at the organization. • Eg : playing negative politics , theft, sabotage, workplace violence , harassment and bullying. Lack of organizational citizenship behaviors • Employees who engage in OCBs are motivated to help the organizations and their coworkers by doing the “ little things” that they are not required to do. • Eg : mentoring new employee, staying late to get a project done, helping a coworker who is behind in her job.

  19. Changes in job structure • Job rotation – moving workers from one specialized job to another. • Job enlargement – the practice of allowing worker to take on additional , varied task in effort to make them feel that they are more valuable members of the organization. • Job enrichment – raising the responsibility associated with a particular job by allowing workers a greater voice in the planning , execution and evaluation of their own activities.

  20. Changes in pay structure • Skill-based pay – paying employees an hourly rate based on their knowledge and skills. • Merit pay – a plan in which the amount of compensation is directly a function of a employee’s performances. • Gainsharing – make pay contingent on effective group performance. • Profit sharing – all employees receive a small share of the organization’s profits.

  21. Flexible work schedule • Compressed work weeks – the number of workdays is decrease while the number of hours worked per day is increased. • Flextime – a scheduling system whereby a worker is committed to a specified number of hours per week but has some flexibility concerning the starting and ending times of any particular workday.

  22. Benefit program • Flexible working hours • Variety of health care option • Different retirement plans • Career development programs • Health promotion programs • Employee-sponsor childcare

  23. Positive Employee Attitudes & Behaviors • Organizational Citizenship Behaviors - consists of efforts by organizational members that advance or promote the work organization , its image , and its goals. • Positive affect and employee well-being - the role of positive emotions , or positive affect , in influencing employee attitudes , such as job satisfaction and fostering positive employee behaviors.

  24. Conclusion • In the nutshell, employee’s commitment plays a vital role in organization. This means that with a committed employees, it will help an organization to boost up its performances as well as the productivity which can leads to a success in this society. • Hence, commitment is a fundamental requirement and quality for employees in order to be a part of an organization and optimize the organization performance.

  25. REFERENCES • Jewell, L. N. (1998). Contemporary industrial/organizational psychology 3rd ed. Pacific Grove, CA :Brooks/Cole Publishing. • Ronald E. Riggio (2003). Introduction to Industrial/Organizational Psychology Fourth Edition. Upper Saddle River, NJ :Pearson Education/Pearson. • Aamodt, Michael G. (2007). Industrial/organizational psychology : an applied approach Fifth Edition. Belmont, CA :Wadsworth Publishing.

  26. REFERENCES • http://userwww.sfsu.edu/~nschultz/documents/knowledge/organizational.commitment.pdf • http://www.effortlesshr.com/blog/employee-issues/understanding-employee-turnover/ • http://www.google.com/url?sa=t&rct=j&q=voluntary+and+involuntary+turnover&source=web&cd=4&ved=0CHQQFjAD&url=http%3A%2F%2Fwww.ok.gov%2Fopm%2Fdocuments%2FEmployee%2520Turnover%2520Presentation.ppt&ei=-AmkT_L7JIKzrAfwuLT1BQ&usg=AFQjCNEo2XjCdD4eVNBymL6MoIr4-JwqdQ • http://www.lcsc.edu/jbowen/HRM/Outlines/HRM%20Chapter%2010%20Outline.pdf • http://en.wikipedia.org/wiki/Absenteeism

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